The global travel retail market is expected to reach $153.7 billion by 2025, registering a CAGR of 9.6% during the forecast period. Substantial development of the travel & tourism sector, including medical tourism, fosters the demand for travel retail services.

Rise in travel & tourism has augmented the demand for apparels, cosmetics, food items, and electronic retail in the travel retail market. Moreover, increase in urbanization and changes in lifestyle are expected to propel the growth of the global travel retail market during the forecast period. In addition, rise in disposable income among the middle-income groups and improvement in economic conditions majorly drive the growth of the market. Also, factors such as technological advancements further boost growth of the market as it increases convenience of accessing transport or booking hotels through online portals. However, unorganized local markets and strict government regulations pertaining to airport retailing impede the growth of the travel retail market. Moreover, increase in the number of millennial population is expected to drive the growth of the market.

The global travel retail market is segmented based on product, channel, and region. The product segment includes perfumes & cosmetics, wine & spirits, tobacco, electronics, luxury goods, food & confectionery, and catering & others. The luxury goods segment possesses high growth potential in the emerging markets, and is anticipated to witness steady growth in the developed regions, owing to early adoption of premium lifestyle. Rise in disposable income, exposure to social media, urbanization, and preference toward investments on personal luxury goods are some of the factors that further drive the market growth. Based on channel, the market is classified into airports; cruise liners; railway stations; and border, downtown, & hotel shops. Based on region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The travel retail market in Asia-Pacific majorly is driven by the tourism industry, as many foreign investors visit countries such as Hong Kong and Malaysia for tax-free shopping. Various market players are keen to expand their market presence by establishing themselves in the Asian markets. For instance, in 2015, Mitsui Outlet Park KLIA, a premium outlet mall was inaugurated in Kuala Lumpur, near the international airport. Bally, Guess, and Boss by Hugo Boss are some of the luxury brand stores in Mitsui Outlet Park KLIA. In addition, Dior Homme, Jimmy Choo, Tiffany & Co, Roger Vivier, MCM, Roos, and Alexander Wang have established their retail stores in Thailand. Moreover, China is one of the largest importers of cosmetics and apparel. This fuels the growth of the market in the Asia-Pacific region.

There is an increase in the standards of living of the people, owing to higher disposable incomes, improvement in lifestyle, and increase in corporate culture. Rise in proliferation of corporate entities in the developing nations has popularized the “carrying expensive & luxurious products” culture among consumers. This culture of owning a luxurious product has become a status symbol among consumers. Thus, the luxury goods segment in the travel retail industry is expected to grow at the fastest rate by 2025.

Railway stations have witnessed a considerable growth over the years. For instance, the London's King's Cross station established an airy-bar restaurant with wooden floors and vintage leather sofas, with an aim to provide comfort to travelers. The station also has various branded stores with different product categories such as clothing and accessories for both men and women, sportswear, music stores with products including audio equipment, CD and vinyl, accessories, and others. These factors boost the growth of the travel retail market at railway stations. The report offer a comprehensive analysis of the key players such as DFS Group, Dufry, LS travel retail, Lotte Duty Free, King Power International Group, The Shilla Duty Free, Gebr, Heinemann, China Duty Free Group (CDFG), Aer Rianta International (ARI), and The Naunace Group.

Key Benefits for Travel Retail Market :

This report provides an in-depth analysis of the global travel retail market to identify the potential investment pockets.

It outlines the current trends and future scenarios to determine the overall market potential and gain a stronger market foothold.

It discusses the key drivers, restraints, and opportunities and their detailed impact analysis.

Quantitative analysis of the market from 2017 to 2025 is highlighted to recognize the financial competency of the market.

Porter’s Five Forces model illustrates the threat of new entrants, threat of substitutes, and strength of the buyers & suppliers.

Request for Table of Content

The global travel retail market has witnessed steady growth in the recent years. Asia-Pacific and Europe are some of the largest travel markets in the world. The adoption of branded & premium clothing, exotic fragrances, and organic skincare products witnessed significant growth, owing to increase in population and economic stability. Thus, most of the retail companies have expanded their outlets in India, China, and other Asia-Pacific countries to strengthen their foothold.

The global travel retail industry is segmented based on channel into airports; cruise liners; railway stations; and border, downtown, & hotel shops. Airport retailing is one of the largest retailing sectors in the global travel retail market. The airport segment generated the maximum revenue in 2017, and is expected to grow at a considerable growth rate during the forecast period, owing to rise in air traffic, development of airport infrastructure, and growing demand for luxurious products among customers. However, the use of border, downtown, & hotel shops is one of the most efficient ways of creating brand awareness among consumers as well as increasing general sales, as it allows customers to view and purchase products without any hassle and inconvenience. Therefore, brands such as Prada, Gucci, H&M, and others are increasingly launching their hotel shops to make it easier for customers to view and purchase products, thereby making it the fastest growing channel in the global travel retail market.